Mercer Posted January 30, 2018 Share Posted January 30, 2018 I'd probably invest in gold, and especially silver as part of my savings if it weren't for the further return on investment I'm anticipating on cryptocurrencies over the next couple of years. Once you go down the rabbit hole of investing, you start to see things in different ways. Noticed when I was in a fiat only frame of mind, I didn't really have a strong urge to save money. Once I got some crypto gains my entire thought process changed both consciously, and subconsciously. The entire time I was in the fiat frame of mind, I'd see very poor returns on my savings accounts. This got worse after 911, then diminished even further after the financial collapse of 2008. Since then, money has been practically given away for free. You can almost take out a loan with low enough interest to invest in something safe like bonds and make money. At the same time, you subconsciously understand that because of inflation, your saved dollar will buy less next year than it would this year. There's basically very little incentive to save, especially for people in middle, lower income brackets. It's smart, but it feels like trying to walk up a down escalator. I think this is the main reason why Americans have become so poor economically. Why store your fiat currency when basically anything you buy is worth more than the dollars you have. How many of you know people that actually saved their own downpayment for a house, without contributions from family? It's becoming almost unheard of. My zip code requires about $100,000 in savings just to make the bare minimum of a 20% down payment (on a small 1 bedroom apartment mind you). It's a tough sell to a young person who's trying to actually enjoy life. I see our economy as being built on this inflation, and debt. People spending every penny they make, as fast as they make them. Why hold that fiat, it's going to be worth less the longer you hold it, even cheap Chinese made plastic goods are worth more than that dollar you were considering stashing away. Oddly enough, I see the good side of this. By spending money on shit we don't need, we've inadvertently made China a 1st world nation, and somehow also kept our own economic system growing (for the rich that is). We work harder because we wanted that new iPhone, and that car we borrowed money to buy, and if we don't make the payments we'll lose it. This is what drives our economy. The downsides of this is so many people not being able to figure out why they're miserable, while missing out on life by chasing that next toy. At the same time it's slowly improving the world and providing economic opportunities for others. Now, Circling back to Cryptocurrencies. They are essentially deflationary since some is inevitably lost to people losing their keys/passwords all the time. I think by nature, they will always be deflationary and go up in value. Thus, people like me that HODL choose not to spend money on cheap Chinese shit, and save knowing next year I'll be able to buy a lambo if I pass on the range rover today (I def don't HODL that much BTW, just using it as an example). I don't think our economy could function in a cryptocentric currency system. Inflation, IMHO isn't such a bad thing looking at the big picture, and probably essential for modern economies to continue to grow. They'll have to figure this inflation/deflation problem out before Crypto is ever successful as a mainstream currency. Not good news for the next generation of HODLers. Why would anyone actually spend a dime on something that wasn't absolutely essential, when it's guaranteed that dime will be worth a quarter in the near future. Quote Link to comment Share on other sites More sharing options...
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